Law of Code #90 - Offshore & Crypto in the BVI, Caymans and Guernsey with Chris Duncan
9 snips
Apr 5, 2023 AI Snips
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Cayman Foundation With BVI Issuer Is A Common Stack
- Common offshore structure uses a Cayman foundation company as a neutral treasury/governance vehicle with a BVI subsidiary handling token issuance.
- Foundations provide ownerless legal personality and supervisory mechanisms to limit team extraction of funds.
Set Up Offshore Entities When They Are Needed
- Set up legal wrappers when you actually need them, often before fundraising or a private token sale, not necessarily years in advance.
- Balance earlier setup costs (directors, fees) against timing needs for investors and sales.
Get Local Counsel For Target Jurisdictions
- Always get legal advice in jurisdictions where your team or users are based, especially the US, to avoid cross‑border securities issues.
- For distributed teams, prioritize advice in enforcement‑active jurisdictions like the US and Canada.